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Appointments Berkshire Hathaway Specialty Insurance

Kathy Reid Named Head of Casualty, North America, at Berkshire Hathaway Specialty Insurance

(BRK.A), (BRK.B)

Berkshire Hathaway Specialty Insurance has promoted Kathy Reid to Head of Casualty, North America.

“Kathy has been a major driver of BHSI’s growth in the casualty marketplace since our very beginning,” said Sanjay Godhwani, President, North America Region, BHSI. “She embodies the excellent capabilities and strong character that define our team around the globe, and I am pleased to have her in this leadership role where she can have an even greater impact as a leader to our teammates and a partner to our customers and brokers.”

Kathy has more than 25 years of insurance industry experience. She has been Senior Vice President at BHSI since 2013.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
See's Candies

See’s Candies Posts Record Numbers

(BRK.A), (BRK.B)

Berkshire Hathaway’s See’s Candies is recording record sales, See’s CEO Pat Egan said at the 2022 Berkshire Hathaway annual meeting.

Egan credits much of the company’s growth to its ecommerce, which has doubled in the past few years. The company shipped 2 million packages in 2021.

While Berkshire doesn’t breakout See’s revenues in its annual report, the candy maker reportedly had gross revenues in excess of $400 million with $80 million in net profits.

See’s has long been a regional brand with its over 200 brick and mortar locations mostly in the western half of the U.S. , although it opened a shop in Manhattan in 2017, and now has overseas locations in the UAE, Hong Kong, Metro Manila, Central Singapore, and Taipei City.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Clayton Homes

Clayton Showcases Its First Net-Zero Home

(BRK.A), (BRK.B)

Berkshire Hathaway’s Clayton, a national builder of off-site and site-built homes, has unveiled its first net-zero electricity home.

Unveiled at the 2022 Berkshire Hathaway Shareholders meeting in Omaha, Nebraska, the home showcases energy-efficient features available to Clayton customers today, as well as new technologies Clayton is exploring for future innovation – including solar power.

“Clayton is committed to building sustainable and attainable homes,” said Kevin Clayton, CEO. “Whether it’s building this net-zero home or through our volunteer program, Clayton Impact, our team members aim to leave a lasting, positive impact on our communities and the planet.”

The net-zero electricity home showcased at the Berkshire Hathaway Shareholders Meeting is The Pulse floor plan, paired with several energy efficiency upgrades and a solar roofing system. Features on the home currently available to customers include Energy Star® appliances, LED lights, Lux windows with argon, 22-21-50 insulation package and an ecobee® smart thermostat. Additional upgrades, not currently offered through Clayton, include CertainTeed® Solar shingles and Benjamin Moore® low-VOC paint. This net-zero electricity home costs just under $230,000 before the cost of land and solar panels.* With all of these upgrades combined, the home produces enough electricity to power itself.

“Our design teams are dedicated to creating homes with the features our customers want while upholding our vision for beautiful, modern design,” explained Megan Foster, Interior Design Manager. “Across all aspects of the building process, from materials to innovative design, Clayton Built homes are built efficiently and thoughtfully to serve as an attainable home solution for a growing number of people.”

Just one 64-gallon bin of waste was collected during the off-site building process of the net-zero electricity home, which was displayed during the annual meeting, helping attendees conceptualize the low amount of waste accumulated during the off-site home building process.

“From the building process to homeownership, Clayton aims to incorporate sustainability across our business,” said William Jenkins, Director of Environment and Sustainability. “While we are continuing to improve the energy efficiency of our homes, our sustainability efforts also include improving the energy and fuel efficiency of our operations, increasing our reliance on renewable energy, and setting ongoing reduction targets for waste and water consumption.”

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions Stock Portfolio

Berkshire Hathaway Bullish on Chevron

(BRK.A), (BRK.B)

In addition to taking a fourteen percent stake in Occidental Petroleum, Berkshire Hathaway has made a dramatic increase to its stake in Chevron in the first quarter of 2022.

Berkshire’s $4.5 billion position in Chevron on December 31,2021, has more than quintupled to $25.9 billion as of March 31, 2022. The move makes Chevron Berkshire’s fourth largest holding behind only its stakes in Apple, Bank of America and American Express.

The position, which was revealed in Berkshire’s latest filing, comes as the oil and gas giant quadrupled its earnings in the first quarter of 2022, its highest quarterly profit in the past ten years.

Chevron’s stock has rocketed up 31.37 year-to-date and its dividend is yielding 3.63%.

Chevron’s $308 billion market capitalization makes it an easy opportunity for Berkshire to put a large portion of its cash position to work.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Financials

Berkshire Hathaway’s Insurance Float Up $1 Billion

(BRK.A), (BRK.B)

Berkshire Hathaway’s Insurance float has continued its growth with an increase of $1 billion at the end of the first quarter of 2022, as compared to the end of the fourth quarter of 2021.

At March 31, 2022, insurance float (the net liabilities we assume under insurance contracts) was approximately $148 billion, an increase of approximately $1 billion since yearend 2021.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Financial Reports

Berkshire Hathaway’s Operating Earnings for Q1 2022 Show Strong Gains in Manufacturing, Service and Retailing Businesses, Lower Insurance-underwriting

(BRK.A), (BRK.B)

Berkshire Hathaway Q1 2022 Operating Earnings (in millions)

First Quarter
2022 2021
Insurance-underwriting $ 47 $ 764
Insurance-investment income 1,170 1,208
Railroad 1,371 1,251
Utilities and energy 750 703
Manufacturing, service and retailing businesses 3,025 2,619
Other 677 473
Operating earnings $ 7,040 $ 7,018

 

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Financials

Berkshire Hathaway Continued Stock Buybacks in Q1 2022

(BRK.A), (BRK.B)

Berkshire Hathaway has continued its stock buybacks in the first quarter of 2022, reporting that “Approximately $3.2 billion was used to purchase shares of Class A and Class B common stock during the first quarter of 2022. On March 31, 2022, there were 1,470,875 Class A equivalent shares outstanding.”

The buybacks have slowed considerably from 2021’s pace, reflecting Berkshire’s rising share price. In the fourth quarter of 2021, Berkshire repurchased $6.9 billion in combined Class A and Class B common stock.

Berkshire’s $27 billion in buybacks for 2021 was a record for the company.

At the Berkshire Hathaway annual meeting, Buffett revealed that he didn’t repurchase any shares in April 2022.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Appointments Berkshire Hathaway HomeServices

Berkshire Hathaway HomeServices New York Properties Plans “Explosive Growth” and Appoints New Leadership

(BRK.A), (BRK.B)

A newly appointed New York City-based leadership team will oversee Berkshire Hathaway HomeServices New York Properties’ “explosive growth” across the city, inclusive of exponential agent count and new office locations on the Upper West Side, Downtown Manhattan and in Brooklyn, with more to follow.

Steven James will serve as the New York City brokerage’s president & CEO; Brad Loe has been appointed executive vice president, director of sales. The pair will work alongside Candace Adams, president & CEO of Berkshire Hathaway HomeServices New England/New York/Hudson Valley Properties, and Diane Ramirez, the New York City brokerage’s chief strategy officer – who joined the executive team at the end of last year – to form the company’s leadership team. Adams will continue overseeing all three brokerages (New England/New York/Hudson Valley Properties), while James, Loe and Ramirez will govern the company’s New York City operations.

“With Steven, Brad, and Diane at the helm, BHHSNYP will expand strategically across New York City while creating a productive, inclusive, and professional work environment that also focuses on personal growth and mentorship,” said Adams. “Our goal is to be the absolute best brokerage in New York, knowing that we are leveraging the venerable Berkshire Hathaway brand.”

“No other firm in New York has this caliber of experienced, proven leadership, coupled with the backing of Berkshire Hathaway,” continued Adams. “Berkshire Hathaway HomeServices marries the local, national, and global real estate markets for its clients.”

Berkshire Hathaway HomeServices New England Properties/New York Properties/Hudson Valley Properties is a leading real estate brokerage firm with more than 2,200 REALTORS® in Connecticut, Rhode Island, Manhattan, Westchester, NY, and Hudson Valley, NY.

“This is the right moment…the right brand,” said James. “To be able to create a new platform that addresses what agents do on a day-to-day basis is incomparable. Agents get lost in the shuffle at big companies — or their achievements go unrecognized. Berkshire Hathaway HomeServices diligently works to be particularly agent centric. We are the ideal brokerage for agents who may have long-term concerns about the stability of their career trajectories. Through our work here, we want to be advocates and sounding boards for these individuals, maintaining an open-door policy that fosters growth as well as greatness.”

James and Loe most recently served as executive directors of brokerage development for HomeServices of America, the parent company of the Berkshire Hathaway HomeServices franchise network.

Prior to those roles, James was president and CEO of Douglas Elliman’s New York City brokerage and director of sales for its East Side office. Loe, highly respected as a mentor to his agents for nearly two decades, was executive manager of sales at Douglas Elliman’s 1995 Broadway and 575 Madison Avenue offices.
James and Loe most recently served as executive directors of brokerage development for HomeServices of America, the parent company of the Berkshire Hathaway HomeServices franchise network.

Prior to those roles, James was president and CEO of Douglas Elliman’s New York City brokerage and director of sales for its East Side office. Loe, highly respected as a mentor to his agents for nearly two decades, was executive manager of sales at Douglas Elliman’s 1995 Broadway and 575 Madison Avenue offices.

Just last month, the firm signed a new, seven-year lease for its offices at 590 Madison Ave., almost doubling the size of its current space. James, Loe and Ramirez will work out of this office, effective immediately.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Brooks

Double-Digit Growth Vaults Brooks Running Into Top Spot in U.S. National Performance Footwear Market

(BRK.A), (BRK.B)

Berkshire Hathaway’s running shoe and fitness apparel company, Brooks Running, is on track for double-digit year-over-year growth in 2022.

After ending 2021 with over $1.11 billion in global revenue, in Q1 2022, Brooks took the top spot in the U.S. National performance footwear market for the first time, with 22% market share, based on revenue. Its Brooks Ghost and Brooks Adrenaline were the top two selling franchise lines in the adult performance running market, collectively accounting for 14% of U.S. sales.

“While Vietnam factory closures last year caused us to fall short of fulfilling strong market demand for Brooks in Q1, we remain bullish for substantial growth in 2022,” said Brooks CEO Jim Weber. “Brooks’ performance products continued to lead with runners and the best is yet to come as our new Glycerin styles come to market featuring DNA LOFT v3, a nitrogen-infused midsole compound that delivers an incredibly compelling running experience.”

The 2022 Sports & Fitness Industry (SFIA) Manufacturers Sales Report, found that total U.S. run industry growth—including equipment, apparel, and footwear—grew 15.8% in 2021.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Kraft Heinz Stock Portfolio

Kraft Heinz Earnings Show Strong Gains in Q1

The Kraft Heinz Company has announced that its Q1 2022 results had a 37.5 percent increase in net income versus the year-ago period to $781 million.

The results were primarily driven by lower non-cash impairment losses in the current year period, lower interest expense primarily due to debt extinguishment costs in the prior year period, and favorable changes in other expense/(income).

Details for Q1:

Diluted EPS was $0.63, up 37.0 percent versus the prior year, driven by the net income/(loss) factors discussed above.

Adjusted EPS was $0.60, down 16.7 percent versus the prior year, primarily driven by lower Adjusted EBITDA, including a negative $0.08 impact from divestitures, and higher taxes on adjusted earnings that more than offset lower interest expense versus the prior year period.

Net sales decreased 5.5 percent versus the year-ago period to $6.0 billion, including a negative 11.2 percentage point impact from divestitures net of acquisitions and a negative 1.1 percentage point impact from currency.

Organic net sales increased 6.8 percent versus the prior year period. Pricing was up 9.0 percentage points versus the prior year period with growth across each reporting segment that was primarily driven by increases to mitigate rising input costs in retail and foodservice channels. Volume/mix declined 2.2 percentage points versus the year-ago period reflecting supply constraints that were partially offset by strong demand for products in retail and a continued recovery in foodservice channels.

Net cash provided by operating activities was $486 million, down 40.0 percent versus the year-ago period, primarily driven by lower Adjusted EBITDA and higher cash outflows for inventories primarily related to stock rebuilding and increased input costs. These impacts were partially offset by lower cash outflows for interest primarily due to prior year reduction of long-term debt and lower cash outflows for variable compensation in 2022 compared to 2021.

Free Cash Flow was $272 million, down 53.4 percent versus the comparable prior year period due to the lower net cash provided by operating activities that was partially offset by lower capital expenditures versus the prior year period.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.